Retailer-reseller embeddedness and price-setting in the informal economy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Uchenna Uzo
Keyword(s):  
Informal Economy ◽  
Design Methodology ◽  
Product Category ◽  
Pricing Strategy ◽  
Unique Contribution ◽  
Price Setting ◽  
Content Type ◽  
Informal Economies ◽  
Relational Embeddedness ◽  
Business To Business

Purpose This study aims to investigate how and why retailers and resellers in sample firms of the informal economy set prices and the performance implications for the firm’s pricing efforts. Design/methodology/approach The author generated their insights through an inductive qualitative study of four organizations operating within the informal economy in the Nigerian retailing sector. Findings The study found that some organizations within the informal economy set prices in different ways i.e. negotiated pricing and fixed pricing. The contracting criteria between the retailers and resellers determine the pricing strategy. Contractual terms based on relational ties between both facilitate negotiated price-setting, while contractual terms based on non-relational ties promote fixed pricing. The type of price-setting arrangement of the sampled retailer relates to the organization’s performance within its industry. Particularly, the study found that retailers that adopted negotiated pricing performed above the industry average for their product category. In contrast, the retailers that adopted fixed pricing performed below the industry average for their product category. Originality/value As far as the author knows, this is the first study to investigate pricing methods within the informal economy. This is also the first known study to investigate price-setting arrangements between retailers and resellers within the informal economy. Another unique contribution of this paper is that it is the first study that focuses on pricing interactions among business-to-business firms within the informal economy. The study contributes to the work on relational embeddedness, relational contracting and informal economies.

Factors explaining a cost-based pricing essence

2019 ◽  
Vol 34 (8) ◽  
pp. 1850-1865
Author(s):  
Juliana Ventura Amaral ◽  
Reinaldo Guerreiro
Keyword(s):  
Design Methodology ◽  
Empirical Studies ◽  
Pricing Strategy ◽  
Company Size ◽  
Price Setting ◽  
Marketing Theory ◽  
Content Type ◽  
Industrial Companies ◽  
Five Factors ◽  
The Cost

Purpose Empirical studies have found that cost-based pricing remains dominant in pricing practice and suggest that practice conflicts with marketing theory, which recommends value-based prices. However, empirical studies have yet to examine whether cost-plus formulas represent the pricing approach or essence. Design/methodology/approach This study aims to address the factors that explain price setting whereby the cost-plus formula is not just the pricing approach but also the pricing essence. This examination is grounded in a survey conducted on 380 Brazilian industrial companies. Findings The results show that, for price-makers, the cost-based pricing essence is positively associated with four factors (two obstacles to deploying value-based pricing, company size and differentiation), but it is negatively related to one factor (premium pricing strategy). For price-takers, the cost-based pricing essence is positively associated with four factors (two obstacles to deploying value-based pricing, coercive isomorphism and use of full costs), but it is negatively related to five factors (one obstacle to deploying value-based pricing, company size, competitors’ ability to copy, normative isomorphism and experience). Originality/value The key contribution of this paper is demonstrating that cost-plus formulas do not go against the incorporation of competitors and value information. This study reveals that it is possible to set prices based on either value or competitors’ prices while simultaneously preserving the simplicity of the cost-plus formulas. Via the margin, firms may connect costs to information about competition and value. The authors also demonstrate the drawbacks of not segregating companies into price-makers and price-takers and an excessive focus on the pricing approach at the expense of pricing essence.

scholarly journals Which cues cause consumers to perceive brands as more global? A conjoint analysis

2015 ◽  
Vol 32 (6) ◽  
pp. 606-626 ◽  
Author(s):  
Sarah De Meulenaer ◽  
Nathalie Dens ◽  
Patrick De Pelsmacker
Keyword(s):  
Cluster Analysis ◽  
Conjoint Analysis ◽  
Consumer Culture ◽  
Design Methodology ◽  
Product Category ◽  
Relative Importance ◽  
Brand Name ◽  
High Involvement ◽  
Content Type ◽  
Practical Implications

Purpose – The purpose of this paper is to investigate how the globalization (vs localization) of different cues (advertising copy, brand name, spokesperson, brand logo) influences consumers’ perceived brand globalness. Design/methodology/approach – The authors conducted conjoint analyses for two products differing in product category involvement (chocolates vs computer) with 200 consumers from the Netherlands. Additionally, based on cluster analysis, the authors divide respondents into two groups: local vs global consumer culture individuals, and the authors compare the results of the conjoint analysis for these two clusters. Findings – Advertising copy is most important in determining perceived brand globalness. The spokesperson and the brand logo determine perceived brand globalness more strongly for a low-involvement product, whereas the brand name is more important for a high-involvement product. Further, the spokesperson and the brand logo are relatively more important for global consumer culture individuals, while local consumer culture individuals find the brand name and advertising copy relatively more important. Practical implications – The most important cue to position a brand as global is the advertising copy. Brand managers of a low-involvement product and/or targeting global-minded consumers should concentrate on the spokesperson and the brand logo to position their brand. Managers of a high-involvement product and/or targeting local-minded people should focus on the brand name. Originality/value – While a number of researchers have emphasized the importance of perceived brand globalness for international consumer behavior, the present study is the first to the authors’ knowledge to investigate the relative importance of different cues in creating perceptions of brand globalness.

The soul of resilience

Kybernetes ◽  
2019 ◽  
Vol 48 (4) ◽  
pp. 672-684 ◽  
Author(s):  
Pille Bunnell
Keyword(s):  
Design Methodology ◽  
Open Space ◽  
Ecological Context ◽  
Dynamic Flow ◽  
Content Type ◽  
Ethical Concerns ◽  
Effective Care ◽  
Relational Embeddedness ◽  
Practical Implications ◽  
Selection Of

Purpose Rather than an attempt to define or clarify resilience in terms of its characteristics, or its correspondence to reality, this paper is a series of reflections that leads to the notion of resilience as a way of being in the world. What is presented is not intended to be conclusive in any way. The paper aims to trigger thoughtful reflections that will lead to further conversations about the entailments and ethical concerns implicit in the concept of resilience. Design/methodology/approach The paper comprises reflections based on a selection of published ideas, as well as on personal engagement in the domains of ecology and the biology of cognition. In postulating that resilience may have a central, ineffable quality, the phrase “soul of” has been used as an approach to considering what such a quality may be. This formulation leads to a consideration about the nature of our relationships with the other such that the notion of resilience has become meaningful. Findings Language parses or chunks named ideas in a way that reveals some regularities and obscures others. The word resilience is one such chunk that historically has changed its meaning. Furthermore in the present the word refers to variable aspects or elements depending on the context of its usage. In the ecological context, resilience entails an ambiguous balance between persistence and change, and indeed this ambiguity may be necessary to accommodate the complexities. In all cases the author has considered, we are only concerned with resilience where there is an ethical dimension and this, inherently, must be multidimensional given the complexities of the systems being regarded. The author claims that the soul of resilience arises through an ethically oriented reflexive awareness of our dynamic flow in a relational embeddedness. Practical implications The practical implications of this paper are elusive, yet meaningful, as the paper attempts to open space for operating in an ethical and useful manner with ambiguous concepts and for avoiding the hubris of certainty. The paper is an explication of one of the ways of thinking inspired by second order science. Originality/value As the reflections in this paper are largely those original to the author, the ideas are original. Whether they have value depends on what ideas, attitudes, orientations and further reflections are triggered and whether these in turn implicitly or explicitly alter actions toward more effective care of our world. If reflection on resilience increases resilience, then this paper will have value.

scholarly journals Resource integration for co-creation between marketing agencies and clients

2018 ◽  
Vol 52 (5/6) ◽  
pp. 1329-1354 ◽  
Author(s):  
Tim Hughes ◽  
Mario Vafeas ◽  
Toni Hilton
Keyword(s):  
Relationship Marketing ◽  
Design Methodology ◽  
Resource Integration ◽  
Marketing Theory ◽  
Content Type ◽  
Integration Approach ◽  
Resource Enhancement ◽  
Operant Resources ◽  
Business To Business ◽  
Practical Implications

Purpose Resource integration is a central idea within service-dominant logic (S-D logic), but there has been little scholarly research on this aspect of theory. This paper aims to explore resource integration between marketing agencies and their clients. Design/methodology/approach In total, nine case studies have been developed using a dyadic approach of interviewing clients and members of their agency teams. This is followed-up with presentations and workshops with over 200 practitioners who validated the findings and added new perspectives. Findings The key operant resources in the client/agency context have been identified. The ways the operant resources of the actors developed during the course of resource integration, building potential resources for future co-creation are shown. The differing perspectives of the actors to each other’s contribution are highlighted. Research limitations/implications This study suggests that resource enhancement and development, as a result of integration, is important. For agency/client research, resource integration and development brings new perspectives complementing existing relationship approaches to research. The findings have implications for relationship marketing theory across business-to-business (B2B) contexts. Practical implications The findings suggest a resource integration approach that could be jointly addressed between agency and client in improving the way they work together. The discourse of co-creation suggests a way for them to talk about how to work together effectively. Suggestions are made for teaching. Originality/value This study develops the S-D logic theory through exploring resource enhancement and development in a B2B co-creation context. The dyadic nature of the research is novel in studying how marketing agencies and clients work together and new perspectives emerge from the approach.

The size of the informal economy in Nigeria: a structural equation approach

2020 ◽  
Vol 47 (8) ◽  
pp. 1063-1078
Author(s):  
Roberto Dell'Anno ◽  
Omobola Adu
Keyword(s):  
Informal Economy ◽  
Structural Equation ◽  
Design Methodology ◽  
Total Population ◽  
National Bureau ◽  
Equation Approach ◽  
Content Type ◽  
Multiple Indicators ◽  
Mimic Approach ◽  
Official Estimate

PurposeThis paper contributes to the literature concerning the Nigerian informal economy (IE) by estimating its size from 1991 to 2017 and identifying the major causes.Design/methodology/approachA structural equation approach in the form of the multiple indicators multiple causes (MIMIC) method is used to estimate the size of the Nigerian IE.FindingsThe results indicate that vulnerable employment and urban population as a percentage of the total population are the main drivers of the IE in Nigeria. The IE in Nigeria ranges from 38.83% to 57.55% of gross domestic product (GDP).Research limitations/implicationsAs a result of the empirical challenges in the estimation of the IE, the estimates of Nigeria's IE are considered to be rough estimates.Originality/valueThe authors calibrated the MIMIC model with the official estimate of the informal sector published by the Nigerian National Bureau of Statistics (NBS). This was an attempt to combine the national accounting approach, to estimate the size of IE, with the MIMIC approach, and to estimate the trend of informality.

scholarly journals Where do we go from here? The future of B2B governance research

2019 ◽  
Vol 35 (4) ◽  
pp. 623-627
Author(s):  
Kenneth Henning Wathne ◽  
Øystein D. Fjeldstad
Keyword(s):  
Value Creation ◽  
Value Chain ◽  
Design Methodology ◽  
Institutional Environment ◽  
Value Chains ◽  
Exchange Relationships ◽  
Content Type ◽  
B2b Relationships ◽  
Business To Business ◽  
Future Business

Purpose This paper aims to identify promising areas for future business to business (B2B) governance research. Design/methodology/approach This paper uses a theoretical approach. Findings Most governance research in marketing is conducted within the context of value chains (Porter 1985). There are great opportunities for governance researchers in marketing to improve the understanding of B2B relationships in problem solving and networking services. Moreover, rapid innovations taking place in networking services are changing the institutional environment across all forms of value creation. This in turn impacts how the nature and governance of relationships in the broader economy are understood. Originality/value The literature on B2B relationship governance is primarily rooted in one particular form of value creation, namely, the “value chain” (Porter, 1985). The authors examine whether the current conceptualization of B2B relationship governance is equally applicable for firms that have a different value creation logic and therefore engage in exchange relationships that differ in their object of exchange.

scholarly journals Tell me more: how salespeople encourage customer disclosure

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jarkko Niemi ◽  
Ellen Bolman Pullins
Keyword(s):  
Qualitative Research ◽  
Conversation Analysis ◽  
Design Methodology ◽  
Customer Orientation ◽  
Customer Relationship ◽  
Content Type ◽  
Video Recordings ◽  
Unexplored Area ◽  
Business To Business ◽  
Exploration Phase

Purpose This paper aims to explore salesperson–customer interactions to identify actual behaviors that result in enhanced customer disclosure and classify them as disclosure tactics, and to explore whether certain tactics are more likely to lead to salesperson–customer relationship advancement. Design/methodology/approach This qualitative research uses conversation analysis to identify salesperson disclosure tactics that result in customer disclosure, using 12 video-recordings of authentic business-to-business initial sales meetings between a salesperson and customer. Findings Findings showed four disclosure tactics that salespeople use to get customers to disclose information: embedded expertise claims, tailored references, demonstrations of preparation and customer orientation and benevolence. These tactics appear more often and are executed differently in sales meetings that successfully advance. Originality/value The research addresses an unexplored area of specific salesperson behaviors and their connection to customer disclosure and relationship advancement in the exploration phase. Additionally, this fills a gap that cannot be addressed with traditional survey or interview data and brings conversation analysis to this particular area.

A framework to manage business-to-business branding strategies

2019 ◽  
Vol 14 (2) ◽  
pp. 110-122 ◽  
Author(s):  
Fabio Cassia ◽  
Francesca Magno
Keyword(s):  
Design Methodology ◽  
Specific Situation ◽  
Content Type ◽  
The Past ◽  
Branding Strategies ◽  
B2b Branding ◽  
Number Of Customers ◽  
The Relationship ◽  
Business To Business ◽  
Practical Implications

PurposeIn the past decades, a growing body of studies has assessed the importance of brands in business-to-business (B2B) markets. However, until date, a comprehensive understanding of B2B branding strategies is lacking. Hence, the purpose of this paper is to develop a framework to select and manage B2B branding strategies.Design/methodology/approachThis study’s arguments are developed in line with MacInnis’s (2011) guidelines on conceptual contributions in marketing.FindingsAs a result of the arguments of this study, a framework is developed to identify the relationships between the types of B2B contexts and effective B2B branding strategies.Research limitations/implicationsDespite deriving from an extensive analysis of the literature, the framework requires future empirical validation. Moreover, the relationship linking a supplier to its customer is unique, and hence, each supplier should carefully select a branding strategy depending on the specific situation.Practical implicationsThe suggested framework provides actionable insights to inform managers’ decisions about the most effective B2B strategy for their firm, based on the relational complexity (number of customers, intensity of co-production and co-creation, and dyadic vs multiple-actor view).Originality/valueThis is the first study to provide a comprehensive model of B2B branding strategies. Therefore, it contributes to both advance theoretical knowledge and managerial practice.

Meeting the needs of different business-to-business customers

2019 ◽  
Vol 35 (11) ◽  
pp. 21-23
Keyword(s):  
Design Methodology ◽  
Business Markets ◽  
Content Type ◽  
Branding Strategies ◽  
Customer Type ◽  
Pertinent Information ◽  
Business Customers ◽  
The Relationship ◽  
Business To Business ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Brands are playing an increasingly influential role in business-to-business markets. Suppliers can become better positioned to exploit the opportunities offered by devising and implementing branding strategies appropriate to the nature of the relationship with and requirements of each customer type. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Variety perception and attitude toward digital assortments

2019 ◽  
Vol 47 (12) ◽  
pp. 1353-1363 ◽  
Author(s):  
Yolande Piris ◽  
Nathalie Guibert
Keyword(s):  
Design Methodology ◽  
Positive Attitude ◽  
Experimental Approach ◽  
Product Category ◽  
Experimental Conditions ◽  
Content Type ◽  
Perceptions And Attitudes ◽  
Practical Implications ◽  
Real Product ◽  
The Way

Purpose The purpose of this paper is to investigate consumers’ variety perception for online grocery assortments and, more generally, to better understand consumers’ attitude toward digital assortments. In particular, this research examines the influence of the organization of products that results from assortment structure and display. Design/methodology/approach Starting from the observation that previous work on traditional assortments is not sufficient to understand consumers’ perceptions and attitudes, the paper adopts a hypothetico-deductive approach and develops four hypotheses. These hypotheses are tested using an experimental approach. Findings This research enables us to see that both attitude and variety perception are affected by the way products are organized on a website. Furthermore, contrary to what the literature on traditional assortments allows one to assume, the assortment corresponding to a more positive attitude is not perceived as being the more varied. As a result, our findings reconsider the link between variety perception and consumer assortment evaluation for digital assortments. Research limitations/implications The work is based on data collected for only one product category. It would be interesting to explore other categories also, to determine if the structure of the assortment and variety perception have stable effects. Practical implications The results inform retailers that they must carefully design the display of their digital assortments. If a retailer wants to enhance variety perception, the authors recommend using an assortment organized by brand, or presenting all the products together. If, instead, the goal is to encourage a positive attitude, the retailer should opt for assortments sorted by attribute or that present all products together. Originality/value This research adopts a new orientation on assortment perception and evaluation, considering the specificities involved in digitizing assortments. In addition, this research studies a real product category and puts respondents in experimental conditions close to reality.

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